Every business owner runs the risk of suddenly needing money. Without a source of emergency dollars, they face the prospect of closing, maybe even permanently. A merchant cash advance helps prevent this unfortunate circumstance from transpiring. Here are a few guidelines worth following when pursuing these essential funds.
Be certain that a merchant cash advance is right for you. Service industries, such as restaurants and retail stores, are usually ideal candidates. The reason for this is that they tend to do a lot of business with credit cards. Look for another type of loan if your venture does not. Without enough credit card activity on your business account, you may not even qualify.
In order to be approved, you’ll need to provide credit card statements as proof of sufficient customer activity. Unique lenders require differing amounts of paperwork. Maximize your options by gathering as many records as possible before your hunt. Verify that you meet your future lender’s requirements ahead of submitting and avoid paying an unnecessary application fee.
Loans should always be made with a specific objective in mind. By identifying your goal, you’ll have a better idea of how much you’ll need and when. Maybe you want to hire seasonal employees or desire additional equipment to increase production. Whatever the case, knowing what you seek to accomplish will help prevent you from shelling out for access to money for no reason.
Reputable lenders will examine your creditworthiness. They do this so they can feel secure knowing you’ll be able to pay them back. Check your credit score first to avoid a nasty surprise. There may even be items you can successfully challenge and have stricken from your report. This could be a fast way to boost your rating. Note that certain lenders require your score to meet a particular threshold. Avoid embarrassment and wasted time by taking stock of this variable.
The quicker you file your application, the less time you’ll be vulnerable to suddenly needing an influx of cash. There’s the possibility that the lending company’s representative will have questions. Answer them as quickly and thoroughly as possible. In addition to keeping the bureaucratic wheels in motion, it shows the lender weighing your application that you are a responsible and dependable entrepreneur.
A merchant cash advance can be an important tool to keep startups out of financial trouble. Use the right approach when seeking these loans for the best results.
Call us to learn more about our business loans. Our large portfolio is sure to have something to offer your business, and we’re also able to tailor a commercial finance solution to meet your needs.